Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261585 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Economic Structures [ISSN:] 2193-2409 [Volume:] 9 [Issue:] 38 [Publisher:] Springer [Place:] Heidelberg [Year:] 2020 [Pages:] 1-12
Publisher: 
Springer, Heidelberg
Abstract: 
The present study examines the long-run and short-run relationship between tax structure and state-level growth performance in India for the period 1991-2016. The analysis in this paper is based on the model of Acosta-Ormaechea and Yoo (2012), and for the verification of the relationship between taxation and economic growth the panel regression method is used. With the use of 14 Indian states data, Panel Pool mean group estimation indicates that income tax and commodity-service tax have negative effects whilst property and capital transaction tax have a significant positive effect on state economic growth. This study finds 'U' shape relationship between tax structure and growth performance. Based on the analysis, we conclude that for faster growth of Indian states, policymakers should give more focus on property taxes along with the reduction in income taxes.
Subjects: 
Tax structure
Growth
Pool mean group
India
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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